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  • Overall approach
    6/12
    • Overarching commitment on deforestation
      0/4
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Commodities (if applicable): Palm oil
      "Supplier shall take appropriate steps to ensure their actions do not have any negative impact on forests, peatlands and other protected territories of any depth. Additionally, Supplier shall not expand into High Carbon Stock (HCS)1 forests, High Conservation Value (HCV)2 areas, or legally-protected areas. When establishing new operations or expanding existing ones, Supplier shall obtain all legal approvals and permissions. Supplier shall keep documentary evidence of land use history and provide it, if requested." 
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Which initiatives?: Consumer Goods Forum Deforestation resolution (being a member of the CGF is not sufficient); New York Declaration on Forests; Palm Oil Innovation Group; UN Global Compact
      "Ferrero signed the New York Declaration on Forests by the United Nations and endorsed the HCS Approach (HCSA), a methodology enabling companies to understand forest areas to be protected for their high carbon and biodiversity values."; "Ferrero is extremely pleased to announce that on 17th November 2015 it became a Palm Oil Innovation Group (POIG) member." Ferrero Group is also a member of the UN Global Compact and the Consumer Goods Forum.
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "Deforestation is one of the biggest causes of the release of greenhouse gases into the atmosphere26, contributing up to 15% of global greenhouse gas emissions. Indeed, the world’s forests preserve an enormous quantity of carbon in the soil – estimated at around 500 billion tonnes – with the great majority located in tropical rainforests. The main driver of deforestation is commercial agriculture, fuelled by the growing demand for key natural resources."
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      2/2
      Yes
      2/2
      Ferrero commit to "40% reduction of CO2 emissions from production activities (compared to 2007)" by 2020.
    • Reporting on emissions from land-use change
      2/2
      Yes
      2/2
      Which method is used to calculate the GHG emissions arising from land use change?: "For Scope 3 GHG calculations, the sources are mainly commercial databases (i.e. Ecoinvent 3.1, IEA) as well as some specific datasets developed internally."

      What is the total volume of GHG emissions arising from land use change?: 3,330,026 tons
      "For FY 17/18, emissions for which we have indirect responsibility (Scope 3) totaled 5,711,880 tons of CO2 equivalents, or 90.4% of total emissions. As part of the scope 3 emissions, the cultivation and production of agricultural raw materials is our biggest source of environmental impact (58.3%)."
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      What is the target date for the company to achieve their climate target?: 2030

      Type of climate target: Other or unclear
      "Reduce absolute Scope 1 and 2 emissions by 50% from a 2018 base year. (by 2030 at global level"
  • Commodity score
    37/88
    • Palm oil
      63/88
      • Commitment Strength
        18/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: RSPO
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions." [...]"We are an active supporter of the High Carbon Stock Approach (HCSA) – a methodology that identifies forest areas for protection and areas of degraded land with low carbon and biodiversity value that may be developed. "
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions." [...]"We are an active supporter of the High Carbon Stock Approach (HCSA) – a methodology that identifies forest areas for protection and areas of degraded land with low carbon and biodiversity value that may be developed. "
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Ferrero and other members of the RSPO adopted the new RSPO Principles & Criteria in 2018 which introduced “No Deforestation, No Development on Peatlands and No Exploitation” restrictions." [...]"We are an active supporter of the High Carbon Stock Approach (HCSA) – a methodology that identifies forest areas for protection and areas of degraded land with low carbon and biodiversity value that may be developed. "
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "We commit to source only palm oil that is 100% RSPO Certified Segregated and traceable to plantations. "
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "We commit to source only palm oil that is 100% RSPO Certified Segregated and traceable to plantations. "
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "We commit to source only palm oil that is 100% RSPO Certified Segregated and traceable to plantations. "
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
      • Social Considerations
        13/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "We furthermore adhere to the Ten Principles of the United Nations Global Compact and to the United Nation Guiding Principles of Business and Human Rights" "This policy statement (Statement) sets out our Human Rights Principles for each of these key areas. We expect all of our employees and business partners to engage with us to align with our priorities throughout the value chain [...] Ferrero is committed to address human rights issues and advance the promotion of human rights along our agricultural supply chain, reaching out all the way to our farmers [...] Freedom of Association and Collective Bargaining [...] No Forced, Bonded and Compulsory Labour [...] Child Protection and No Child Labour [...] Diversity and Inclusion, No Discrimination and Harassment"
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 24,974

          If Other, specify here: Inclusion

          What is the nature of that support?: Other
          "We are committed to making sure that our palm oil suppliers are: Providing fully traceable oil, while including smallholders". "We recorded the contribution of some 24,974 smallholder growers." "With TFT, Ferrero is working to launch the Rurality initiative, focused on the cultural, ecological, and logistical diversity of smallholders’ work, to thus provide tailored support to enable them to be part of the market as well as improve their resilience."
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "We require our suppliers: [...] to not discriminate against personnel on the basis of race, nationality, gender and religion"; "Ferrero requires its suppliers, trade partners, commercial agents, subcontractors, distributors and vendors to respect human rights and to ensure that none of their employees shall suffer from any form of discrimination, abuse or harassment, based on: race, gender, age, origin, ethnic, physical ability, religious, political, social and cultural diversity. In particular, Ferrero requires that the respect of pregnancy is supported."
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "All palm oil purchased shall comply with the following values: [...] Respecting human rights, implementing Free Prior and Informed Consent."
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        32/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "We have been a member of the RSPO since 2005. In 2015, we became one of the first global companies to source sustainable palm oil that is 100% RSPO Certified Segregated."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Progress reported within 2020 ACOP report
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            They report that 99.96% traceable palm oil to plantation 
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            Which processes or groups does the company use for third party verification?: RSPO
            "We have been a member of the RSPO since 2005. In 2015, we became one of the first global companies to source sustainable palm oil that is 100% RSPO Certified Segregated."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: RSPO

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO
            Progress reported within 2019 ACOP report
          • Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            "Given the unique traceability of our palm oil supply chain, we can evaluate historical and current land use dynamics. We actively collaborate with the Tropical Futures Initiative and Center for Earth Observation &Citizen Science (EOCS) of IIASA – the International Institute for Applied Systems Analysis, UN-FAO and other organizations in order to apply land use changemodeling for our efforts.Testing satellite-based assessments In 2018 we concluded piloting a geospatial assessment to monitor forest cover change withinour supply chain and to understand the capabilitiesof satellite monitoring for non-deforestation verification purposes. The assessment, Starling,has been developed through a partnership betweenAirbus Defence and Space, The Forest Trust (TFT)and SarVision, using a combination of remotesensing technologies."
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          "Supplier shall take appropriate steps to ensure their actions do not have any negative impact on forests, peatlands and other protected territories of any depth. Additionally, Supplier shall not expand into High Carbon Stock (HCS)1 forests, High Conservation Value (HCV)2 areas, or legally-protected areas. When establishing new operations or expanding existing ones, Supplier shall obtain all legal approvals and permissions. Supplier shall keep documentary evidence of land use history and provide it, if requested. [...] Supplier shall take appropriate steps to ensure throughout their operations and their entire supply chain, that biodiversity is preserved. When establishing new operations or expanding existing ones, Suppliers shall take appropriate steps to protect High Conservation Value areas and foster biodiversity. Supplier shall keep documentary evidence of land use history and provide it, if requested."
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?:  Starling assessment

          What is the nature of that participation?: Attending & contributing to meetings
          "In 2018 we concluded piloting a geospatialassessment to monitor forest cover change withinour supply chain and to understand the capabilitiesof satellite monitoring for non-deforestationverification purposes. The assessment, Starling,has been developed through a partnership betweenAirbus Defence and Space, The Forest Trust (TFT)and SarVision, using a combination of remotesensing technologies [...] We actively support the POIG, a multi-stakeholder initiative with a mission to transform the palm oil industry and break the link between palm oil, the destruction of forests and peatlands, and the violation of human and labor rights."
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Comply with all laws and regulations applicable in the countries in which the Supplier operates (such as those relating to sanctions, export controls and reporting obligations, anti-bribery and anti-corruption laws, data protection, confidentiality & privacy, intellectual property and anti-trust and competition laws); • Keep a record of any assessments, results and/or actions under this paragraph for at least 5 years unless a longer period is mandated by contract or applicable law. Our Suppliers will work with Ferrero to ensure their practices are aligned with the Responsible Sourcing Pillars and collaborate to find appropriate actions for continuous improvement. Where a Supplier is aligned with our Responsible Sourcing Pillars, it will also engage with us in a journey of continuous improvement. Any action plans and specific improvement measures will be developed with us in a collaborative way. The improvement measures and/or suggestions do not constitute legal advice and do not relieve Suppliers of their obligations to consult legal professionals. In addition, our improvement measures and suggestions do not preclude Suppliers from going beyond what is suggested. Each pillar involves several workstreams that demand programs, procedures and processes and our Suppliers agree to engage with us on each of these pillars. Suppliers must comply with all laws and regulations applicable in the countries in which the Supplier operates. If there is a conflict between international standards and applicable laws, Suppliers must comply with the applicable laws, while seeking ways to honor these international standards. Our commercial relationship with our Suppliers will be guided by our Suppliers’ involvement and proactivity in implementing these pillars."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Which issues does the grievance mechanism cover?: Social; Environmental

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own
          "The Ferrero Integrity Helpline is for reporting issues in relation to our Code of Ethics and/or our Code of Business Conduct confidentially. It is open 24-hours-a-day, 365-days-a-year and can be accessed in 43 languages. The Ferrero Integrity Helpline is managed by a third-party, Convercent. Once a report has been submitted to Convercent, it is immediately made available to a Ferrero Steering Committee for review.Click here to connect to the Ferrero Integrity Helpline in order to ask a question, report an incident or find a local telephone number."
        • Report volumes of commodity
          Reporting partial volumes
          1/2
          Report volumes of commodity
          Reporting partial volumes
          1/2
          Total/partial volume reported: 220,000 metric tonnes
          "In FY 2019/2020, we sourced around 220,000 metric tonnes of palm oil from seven countries (see table). This amount is just below 0.3% of the total annual global palm oil production."
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%

          What is the certified volume?: 220,000 metric tonnes

          What third-party verification is used?: RSPO
          "We commit to source only palm oil that is 100% RSPO Certified Segregated and traceable to plantations."
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          Ferrero has published an updated supplier list in 2021, with the exact coordinates of it's own mills and those of it's indirect suppliers too
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers production or primary processing operations in its supply chains
          4/4
          How frequently is compliance assessed?: Not specified

          Details of monitoring: Using internal monitoring and verification systems; Using third party verification
          "In line with this significant traceability andtransparency effort, we commissioned a third-partyverifier, Bureau Veritas, to carry out a pilot assessmentin November 2018 on the field in order to determinePOIG compliance of suppliers. The pilot assessmentwill be followed by systematic extension of verificationto several supplying mills against the full POIGchecklist during 2019. Our intention is to broaden theverification scope to the majority of our supply chain." "During 2017, we started to systematically implement the Charter’s requirements in our supply chain using the Verification Protocol."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Verification Protocol and roadmaps
          "During 2017, we started to systematically implement the Charter’s requirements in our supply chain using the Verification Protocol. As a demonstration of our engagement with our suppliers, the Protocol allows for roadmaps with each supplier to address specific gaps and needs identified against our policies [...] We believe that mitigating risks requires a joint effort and maintaining an internal alert/early warning system is an asset. Therefore, we continue to actively engage with our suppliers in order for them to:continue to support our effort in maintaining a collaborative and transparent business environment, including full supply chain transparency;notify us immediately, if a producer OR its subsidiary OR its parent company OR any other business entity related to the producer is linked or accused of potentially illegal activities;notify us whenever a new producer is included in our supply chain;maintain adequate Grievance Management Systems"
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper
      31/88
      • Commitment Strength
        8/20
        • Commitment to protect priority forests
          4/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: FSC; PEFC
            "100% of our virgin fiber paper and cardboard are certified FSC or PEFC." 
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "100% of our virgin fiber paper and cardboard are certified FSC or PEFC." 
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "100% of our virgin fiber paper and cardboard are certified FSC or PEFC." 
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "100% of our virgin fiber paper and cardboard are certified FSC or PEFC." 
        • Commitment to reduce use of virgin wood fibre
          4/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Reduction of material inputs
            Changed size and composition of Thank you Teacher and Father’s Day boxes’ packaging. This allowed a reduction of almost 38 tons of paper." "Our plant in Baramati (India) Saved more than 20 tons of cardboard thanks to the removal of the filler from the TIC TAC play and to its general redesign."
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Product line; Location
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Changed size and composition of Thank you Teacher and Father’s Day boxes’ packaging. This allowed areduction of almost 38 tons of paper." "Our plant in Baramati (India) Saved more than 20 tons of cardboard thanks to the removal of the filler from the TIC TAC play and to its general redesign."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Target date is current - see 3.2
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "We furthermore adhere to the Ten Principles of the United Nations Global Compact and to the United Nation Guiding Principles of Business and Human Rights" "This policy statement (Statement) sets out our Human Rights Principles for each of these key areas. We expect all of our employees and business partners to engage with us to align with our priorities throughout the value chain [...] Ferrero is committed to address human rights issues and advance the promotion of human rights along our agricultural supply chain, reaching out all the way to our farmers [...] Freedom of Association and Collective Bargaining [...] No Forced, Bonded and Compulsory Labour [...] Child Protection and No Child Labour [...] Diversity and Inclusion, No Discrimination and Harassment"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
           "We require our suppliers: [...] to not discriminate against personnel on the basis of race, nationality, gender and religion"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        18/50
        • Reporting against commitments
          1/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "100% of our virgin fiber paper and cardboard are certified FSC or PEFC." 
          • Commitment to reduce use of virgin wood fibre
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            Commitment to reduce use of virgin wood fibre
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            "Changed size and composition of Thank you Teacher and Father’s Day boxes’ packaging. This allowed areduction of almost 38 tons of paper." "Our plant in Baramati (India) Saved more than 20 tons of cardboard thanks to the removal of the filler from the TIC TAC play and to its general redesign."
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC certification

            Which processes or groups does the company use for third party verification?: FSC and PEFC
             "100% of our virgin fiber paper and cardboard are certified FSC or PEFC."  
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Comply with all laws and regulations applicable in the countries in which the Supplier operates (such as those relating to sanctions, export controls and reporting obligations, anti-bribery and anti-corruption laws, data protection, confidentiality & privacy, intellectual property and anti-trust and competition laws); • Keep a record of any assessments, results and/or actions under this paragraph for at least 5 years unless a longer period is mandated by contract or applicable law. Our Suppliers will work with Ferrero to ensure their practices are aligned with the Responsible Sourcing Pillars and collaborate to find appropriate actions for continuous improvement. Where a Supplier is aligned with our Responsible Sourcing Pillars, it will also engage with us in a journey of continuous improvement. Any action plans and specific improvement measures will be developed with us in a collaborative way. The improvement measures and/or suggestions do not constitute legal advice and do not relieve Suppliers of their obligations to consult legal professionals. In addition, our improvement measures and suggestions do not preclude Suppliers from going beyond what is suggested. Each pillar involves several workstreams that demand programs, procedures and processes and our Suppliers agree to engage with us on each of these pillars. Suppliers must comply with all laws and regulations applicable in the countries in which the Supplier operates. If there is a conflict between international standards and applicable laws, Suppliers must comply with the applicable laws, while seeking ways to honor these international standards. Our commercial relationship with our Suppliers will be guided by our Suppliers’ involvement and proactivity in implementing these pillars."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own

          Which issues does the grievance mechanism cover?: Social; Environmental
          "The Ferrero Integrity Helpline is for reporting issues in relation to our Code of Ethics and/or our Code of Business Conduct confidentially. It is open 24-hours-a-day, 365-days-a-year and can be accessed in 43 languages. The Ferrero Integrity Helpline is managed by a third-party, Convercent. Once a report has been submitted to Convercent, it is immediately made available to a Ferrero Steering Committee for review.Click here to connect to the Ferrero Integrity Helpline in order to ask a question, report an incident or find a local telephone number."
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          100%
          6/6
          Report verified volumes of commodity
          100%
          6/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
          "100% of our virgin fiber paper and cardboard are certified FSC or PEFC."
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Not specified

          Details of monitoring: Using internal monitoring and verification systems
          "When we acquire raw materials, equipment, goods, packaging andservices, the choice of our trade partners is based upon: [...] ethical, social and environmental principles [...] Ferrero Group reserves the right to verify the supplier’s compliance with thisCode. Ferrero Group will not engage in commercial relationships with supplierswho do not accept the conditions of this Code.In case Ferrero Group becomes aware of any actions or conditions not incompliance with this Code, it could demand corrective measures and reservesthe right to terminate the commercial agreement."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "When we acquire raw materials, equipment, goods, packaging andservices, the choice of our trade partners is based upon: [...] ethical, social and environmental principles [...] Ferrero Group reserves the right to verify the supplier’s compliance with thisCode. Ferrero Group will not engage in commercial relationships with supplierswho do not accept the conditions of this Code.In case Ferrero Group becomes aware of any actions or conditions not incompliance with this Code, it could demand corrective measures and reservesthe right to terminate the commercial agreement."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      16/88
      • Commitment Strength
        1/20
        • Commitment to protect priority forests
          1/11
          • Commitment details
            Sustainability commitment/other
            1.3/8
            Commitment to protect priority forests
            Sustainability commitment/other
            1.3/8
            (For downstream soy companies only) Does the company commitment also explicitly apply to hidden/indirect soy?: No
            "In Brazil, we work with selected suppliers and Proterra, a non-profit organisation that promotes the sustainability of the food production system, to reinforce our commitments on deforestation. [...] Already 80% of our soy lecithin is sourced as ProTerra certified (of which 100% of the soy sourced in Brazil)."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Location
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        5/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "We furthermore adhere to the Ten Principles of the United Nations Global Compact and to the United Nation Guiding Principles of Business and Human Rights" "This policy statement (Statement) sets out our Human Rights Principles for each of these key areas. We expect all of our employees and business partners to engage with us to align with our priorities throughout the value chain [...] Ferrero is committed to address human rights issues and advance the promotion of human rights along our agricultural supply chain, reaching out all the way to our farmers [...] Freedom of Association and Collective Bargaining [...] No Forced, Bonded and Compulsory Labour [...] Child Protection and No Child Labour [...] Diversity and Inclusion, No Discrimination and Harassment"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "We require our suppliers: [...] to not discriminate against personnel on the basis of race, nationality, gender and religion"; "Ferrero requires its suppliers, trade partners, commercial agents, subcontractors, distributors and vendors to respect human rights and to ensure that none of their employees shall suffer from any form of discrimination, abuse or harassment, based on: race, gender, age, origin, ethnic, physical ability, religious, political, social and cultural diversity. In particular, Ferrero requires that the respect of pregnancy is supported."
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        10/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            "In Brazil, we work with selected suppliers and Proterra, a non-profit organisation that promotes the sustainability of the food production system, to reinforce our commitments on deforestation. [...] Already 80% of our soy lecithin is sourced as ProTerra certified (of which 100% of the soy sourced in Brazil)."
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
            Commitment to protect priority forests
            No
            0/1.5
            Which tools, approaches, third-party verification, including certification, schemes are used?: ProTerra certification

            Which processes or groups does the company use for third party verification?: ProTerra
            "In Brazil, we work with selected suppliers and Proterra, a non-profit organisation that promotes the sustainability of the food production system, to reinforce our commitments on deforestation. [...] Already 80% of our soy lecithin is sourced as ProTerra certified (of which 100% of the soy sourced in Brazil)."
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Comply with all laws and regulations applicable in the countries in which the Supplier operates (such as those relating to sanctions, export controls and reporting obligations, anti-bribery and anti-corruption laws, data protection, confidentiality & privacy, intellectual property and anti-trust and competition laws); • Keep a record of any assessments, results and/or actions under this paragraph for at least 5 years unless a longer period is mandated by contract or applicable law. Our Suppliers will work with Ferrero to ensure their practices are aligned with the Responsible Sourcing Pillars and collaborate to find appropriate actions for continuous improvement. Where a Supplier is aligned with our Responsible Sourcing Pillars, it will also engage with us in a journey of continuous improvement. Any action plans and specific improvement measures will be developed with us in a collaborative way. The improvement measures and/or suggestions do not constitute legal advice and do not relieve Suppliers of their obligations to consult legal professionals. In addition, our improvement measures and suggestions do not preclude Suppliers from going beyond what is suggested. Each pillar involves several workstreams that demand programs, procedures and processes and our Suppliers agree to engage with us on each of these pillars. Suppliers must comply with all laws and regulations applicable in the countries in which the Supplier operates. If there is a conflict between international standards and applicable laws, Suppliers must comply with the applicable laws, while seeking ways to honor these international standards. Our commercial relationship with our Suppliers will be guided by our Suppliers’ involvement and proactivity in implementing these pillars."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No

          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own
          "The Ferrero Integrity Helpline is for reporting issues in relation to our Code of Ethics and/or our Code of Business Conduct confidentially. It is open 24-hours-a-day, 365-days-a-year and can be accessed in 43 languages. The Ferrero Integrity Helpline is managed by a third-party, Convercent. Once a report has been submitted to Convercent, it is immediately made available to a Ferrero Steering Committee for review.Click here to connect to the Ferrero Integrity Helpline in order to ask a question, report an incident or find a local telephone number."
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
          Report verified volumes of commodity
          No disclosure
          0/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 80%
          "In Brazil, we work with selected suppliers and Proterra, a non-profit organisation that promotes the sustainability of the food production system, to reinforce our commitments on deforestation. [...] Already 80% of our soy lecithin is sourced as ProTerra certified (of which 100% of the soy sourced in Brazil)." 
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Not specified

          Details of monitoring: Using internal monitoring and verification systems
          "When we acquire raw materials, equipment, goods, packaging andservices, the choice of our trade partners is based upon: [...] ethical, social and environmental principles [...] Ferrero Group reserves the right to verify the supplier’s compliance with thisCode. Ferrero Group will not engage in commercial relationships with supplierswho do not accept the conditions of this Code.In case Ferrero Group becomes aware of any actions or conditions not incompliance with this Code, it could demand corrective measures and reservesthe right to terminate the commercial agreement."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
          Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
          "When we acquire raw materials, equipment, goods, packaging and services, the choice of our trade partners is based upon: [...] ethical, social and environmental principles [...] Ferrero Group reserves the right to verify the supplier’s compliance with this Code. Ferrero Group will not engage in commercial relationships with suppliers who do not accept the conditions of this Code. In case Ferrero Group becomes aware of any actions or conditions not incompliance with this Code, it could demand corrective measures and reserves the right to terminate the commercial agreement."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    9/20
    Avg. score
  • Reporting and Implementation
    20/50
    Avg. score
  • Social considerations
    8/18
    Avg. score

Profile

Ferrero Group is an Italian family-owned confectionary company. Famous brands include Nutella, Kinder, Tic Tac, and Ferrero Rocher. The company operates in over 50 countries, and is one of the largest chocolate manufactures in the world. Ferrero Group is selected as a powerbroker for palm oil, soy and paper packaging.

Sector
Industry sector 
Packaged food
Segments
Manufacturer
HQ
HQ 
Italy
Company Type
Company type 
Private
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Ferrero, Ferrero Rocher, Kinder, Nutella, Thorntons, Tic Tac

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.